The BREAK—DOWN Episode 4: What Economics Gets Wrong About Climate Change w/ Ha-Joon Chang
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Jun 27, 2024 
Ha-Joon Chang, a noted economist and author from SOAS University, dives deep into the flaws of traditional economic models regarding climate change. He critiques neoclassical economics for its conservative approach and ethical gaps in its life valuation frameworks, revealing disparities between developed and developing nations. Chang argues for rethinking economic growth, emphasizing sustainability and innovative solutions over mere market fixes. He stresses the need for government intervention to tackle the complexities of environmental issues and promote equitable global trade.
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Neoclassical Economics and Climate Change
- Neoclassical economics struggles to address issues like climate change because it prioritizes not harming anyone in their current state.
- This makes it difficult to implement policies that require redistribution of wealth or power, even if they would benefit the majority.
Discounting the Future
- Economic models often employ discounting, which devalues future outcomes compared to present ones.
- This can lead to undervaluing the long-term impacts of climate change, as future costs are significantly discounted.
Valuing Human Life
- Economists attempt to assign a monetary value to human life, often based on wage differentials in risky jobs.
- This approach is problematic when applied to climate change, as it leads to varying valuations of life based on income levels across countries.
